eligibility of tds added to cost of assets

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nikhil suhas samak (Querist)
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20 August 2010 My question is that at the time of capitalisation of assets like building, then tds is deducted at the time of labour payment.Will Such TDS amount form part of assets(building)?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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20 August 2010 In any case, the gross amount (labour etc) will be included in the value of building.

TDS is merely a deduction made by you on behalf of the contractor so it does not have any impact on the value of building.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 August 2010 Yes TDS to be deducted on the labour part. TDS is recovered from labour payments and is not an expense. SO it will not form part of cost of asset.

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